Benefits paid to employees of Indian tribes
Section 14M. Benefits paid to employees of Indian tribes shall be financed and paid in accordance with this section.
(a) The term “employer” shall include an Indian tribe for which service in employment as defined under this chapter is performed.
(b) The term “employment” shall include service performed in the employ of an Indian tribe, as defined in section 3306(u) of the Federal Unemployment Tax Act, in this section called FUTA, provided such service is excluded from “employment” as defined in FUTA solely by reason of section 3306(c)(7) of FUTA and is not otherwise excluded from employment under this chapter.
(c) Benefits based on service in employment defined in this section shall be payable in the same amount, on the same terms and subject to the same conditions as benefits payable on the basis of other service subject to this chapter.
(d)(1) Indian tribes or tribal units, subdivisions, subsidiaries or business enterprises wholly owned by such Indian tribes, subject to this chapter shall pay contributions under the same terms and conditions as employers subject to section 14, unless they elect to pay into the Unemployment Compensation Fund amounts equal to the amount of benefits attributable to service in the employ of the Indian tribe.
(2) Indian tribes electing to make payments in lieu of contributions shall make such election in the same manner and under the same conditions as provided in section 14A pertaining to nonprofit organizations subject to this chapter. Indian tribes shall determine if reimbursement for benefits paid will be elected by the tribe as a whole, by individual tribal units or by combinations of individual tribal units.
(3) Indian tribes or tribal units shall be billed for the full amount of benefits attributable to service in the employ of the Indian tribe or tribal unit on the same schedule as other employing units that have elected to make payments in lieu of contributions.
(4) At the discretion of the commissioner, an Indian tribe or tribal unit that elects to become liable for payments in lieu of contributions shall be required within 30 days after the effective date of its election to:
(i) execute and file with the commissioner a surety bond approved by the commissioner; or
(ii) deposit with the commissioner money or securities on the same basis as other employers with the same election option.
(e)(1)(i) Failure of the Indian tribe or tribal unit to make required payments, including assessments of interest and penalty, within 90 days of receipt of the bill, shall cause the Indian tribe to lose the option to make payments in lieu of contributions, as described in subsection (d), for the following calendar year unless payment in full is received on or before December 31.
(ii) An Indian tribe that loses the option to make payments in lieu of contributions due to late payment or nonpayment, as described in subparagraph (i), shall have the option reinstated as of the next calendar year if, after a period of 1 year, all contributions have been timely made and no contributions, payments in lieu of contributions, penalties or interest remain outstanding.
(iii) The commissioner shall notify the United States Internal Revenue Service and the United States Department of Labor of any determinations made under subparagraphs (i) and (ii).
(f) The commissioner shall notify annually those Indian tribes or their tribal units who fail to make the required payments, including assessments of interest and penalties, that failure to make full payment by December 31 shall cause the Indian tribe:
(1) to be liable for taxes under the Federal Unemployment Tax Act; and
(2) to lose the option to make payments in lieu of contributions.
(g) Extended benefits paid that are attributable to service in the employ of an Indian tribe and not reimbursed by the Federal government shall be financed in their entirety by the Indian tribe.